Electronic content is delivered to network users in many forms, such as email, web pages, audio streams, video streams and Java applets. Many companies (hereinafter “advertisers”) advertise their wares and services by paying popular content providers (hereinafter “providers”) to include the advertisers' advertisements in the providers' content as that content is delivered to users.
Just as the form of the content may vary, so too may the form of the advertisement. For example, when the content is a web page the advertisement may be a banner ad. When the content is an email message, the advertisement may be text in a tag line. When the content is a stream of music or video, the advertisement may be a sound bite or video clip. The techniques described herein are not limited to any particular form of network-delivered content or advertisements.
The effectiveness of an advertisement greatly depends on the circumstances under which it is received. For example, an advertisement about football merchandise is more likely to be effective when viewed by people interested in football, than when viewed by people interested in breakthroughs in the treatment of arthritis. Consequently, the contract between the advertiser and the provider frequently specifies the criteria under which the provider will provide an advertisement. Such conditions, referred to herein as the “delivery criteria” of the advertisement, may include such specifics as (1) the manner of including the advertisement in the content (e.g. what size and position on a web page), (2) criteria for content that the advertisement will accompany, and (3) criteria for the users to whom the advertisement should be delivered. For example, a seller of football merchandise may require that its advertisement be delivered on the top of pages that contain news stories relating to football, and where the recipients are males between the ages of 20 and 50.
In addition to the delivery criteria, the contract between the advertiser and the provider also identifies specific “delivery obligations”. The delivery obligations set forth the advertisers obligations relative to delivering the advertisement. The delivery obligation for a particular advertisement may, for example, obligate the provider to provide 10,000 “ad-views” of the advertisement during a particular time period. Each time a content provider provides to a user content that includes the particular advertisement, an “ad-view” of the particular advertisement is said to have occurred.
An ad-view is merely one form of “service unit” that an advertiser may purchase from a provider. Various other forms of service units are possible, including but not limited to: actual click-throughs on advertisements, actual viewing time of advertisements, actual orders resulting from advertisements, etc. The techniques described herein are not limited to any particular form of service unit.
For the purpose of explanation, a particular delivery of a particular piece of content can be considered to have a specific number of “slots” into which advertisements may be placed. For example, a particular web page that is being delivered to a particular user may include two slots for advertisements: one slot for a horizontal banner at the top of the page, and one slot for vertical banner on the right hand side of the page. Similarly, a particular video feed may have one slot for a one-minute video clip advisement at the start of the feed, and one slot for a two-minute video clip advertisement during the middle of the feed.
Each slot is associated with a set of “slot attributes”. The slot attributes associated with a slot may include, for example, the nature of the content that contains the slot, the size and placement of the slot within that content, and the characteristics of the user to which the content is being delivered. For example, a slot may have the attributes: “content=web page containing sports story”, “recipient=29 year old male”, “size=large banner”, “placement=top of page”. To determine whether a particular advertisement can be placed in a particular slot, the delivery criteria of the advertisement are compared to the slot attributes of the slot.
To maximize revenue, providers typically attempt to enter into contracts with enough advertisers to ensure that every slot of every piece of delivered content is filled by a paid advertisement. Thus, a provider typically enters agreements with many advertisers. As a consequence, it is possible for multiple advertisements to qualify for the same slot.
For example, assume that a provider considers it optimal to display a single advertisement on web pages that include stories about sports. Thus, each page about sports that the provider delivers to a user has a single slot. Further assume that the provider has contracted with one advertiser to provide 2,000 ad-views of advertisement X on pages that contain sports stories during a particular month, and with another advertiser to provide 1,000 ad-views of advertisement Y on pages that contain sports stories during that same month. Under these circumstances, both advertisement X and advertisement Y qualify for inclusion in the slot of web pages that contain sports stories. Consequently, during that particular month, every time the provider is to deliver a web page containing a sports story, the provider must determine whether to include advertisement X or advertisement Y.
Thus, from the perspective of the provider, there are many circumstances where multiple advertisements are “competing” for the same slot. The simplest technique for dealing with such situations is for the advertiser to simply provide one advertisement until that advertisement's delivery obligations have been satisfied, and then move on to the next competing advertisement and do the same. For example, the advertiser may simply provide advertisement X with the first 2,000 pages that contain a sports story, and then provide advertisement Y with the next 1,000 pages that contain a sports story.
Unfortunately, it may turn out that the provider receives insufficient requests for particular types of content to satisfy all of its delivery obligations. For example, during the month in which the provider has contracted to provide ad-views for advertisements X and Y, the provider may only receive 2000 requests for sports stories. Under these conditions, the content provider would not be able to satisfy its delivery obligations for both advertisement X and advertisement Y. Situations in which the content requests received by a provider do not allow the provider to achieve all of its delivery obligations are referred to herein as “shortfall” situations. How providers deal with shortfall situations can greatly affect the satisfaction level of the advertisers.
One technique for handling multiple competing delivery obligations involves using a “behindness” measure to select among the advertisements that are competing for a slot. In general, the behindness value of an advertisement reflects how far behind the provider is on satisfying the delivery obligations associated with the advertisement. For example, a behindness measure may indicate what percentage of the advertisement's delivery obligation will not be satisfied given (1) how much of the delivery obligation has been satisfied, and (2) how much of the obligation period has passed.
For example, assume that the provider is obligated to provide 2000 ad-views of advertisement X during a particular month. If the provider has provided 1000 ad-views of advertisement X when the month is half over, then the provider is “on track” relative to the delivery obligations of advertisement X, and the behindness value for advertisement X is 1 (50% obligation remaining/50% time-remaining). On the other hand, if the provider has only provided 500 ad-views of advertisement X when the month is half over, then advertisement X has a behindness value of 1.5 (75% obligation remaining/50% time-remaining). This is merely one example of how a behindness value may be calculated. The techniques described herein are not limited to any particular formula for calculating a behindness value.
One way of using a behindness measure to select among the advertisements that are competing for a slot involves always selecting the qualifying advertisement with the highest behindness value. By selecting the qualifying advertisement with the highest behindness value, the provider ensures that approximately the same percentage of every order is satisfied during a shortfall situation.
Unfortunately, the most-behind-first approach has some significant disadvantages. For example, a latecomer advertiser may be interested in advertising in slots that are already subject to several pre-existing obligations. If the latecomer advertiser becomes aware of the pre-existing obligations, the advertiser may contract for a much higher delivery obligation than the advertiser actually desires. Such a contract could significantly reduce the number of slots assigned to the previously contracted advertisers while unfairly granting the latecomer advertiser the number of slots that the advertiser actually desired. In addition, because the most-behind-first approach does not take into account of the value of the contract, if the latecomer advertiser offers a lower value for the contract than the previously contracted advertisers, the provider could be obligated to fulfill the higher delivery obligations at a lower revenue level.
Based on the foregoing, it is desirable to provide a technique for selecting which advertisement to include in a particular slot, when a number of advertisements are competing for inclusion in the same slot. It is further desirable that the selection technique provides a fair and efficient way of dealing with the shortcomings of the most-behind-first approach.